Barry & Darnell: Explanation of Issues in PPL v. Commissioner

Jordan M. Barry (San Diego) & Janelle N. Darnell (J.D. 2013, San Diego), Explanation of Issues in PPL v. Commissioner, ABA Preview of U.S. Supreme Court Cases, Vol. 40, Issue 5, pp. 201-04, 2013:

This short article briefly summarizes the chief arguments of PPL corporation and the IRS as to whether the United Kingdom's Windfall Tax qualifies for a United States foreign income tax credit under § 901. PPL argues that the Windfall Tax is a tax on income and that PPL is therefore entitled to a foreign tax credit that will greatly reduce its federal income tax liability. The IRS argues that the Windfall Tax is a tax on value and, accordingly, that PPL is not entitled to a foreign tax credit. This case could have major implications for U.S. corporations, which claim over $100 billion in foreign tax credits each year.  

Prior TaxProf Blog coverage:

• Jacob Goldin (Ph.D. Candidate (Economics), Princeton University), Reconsidering Substance Over Form in PPL, 137 Tax Notes 1229 (Dec. 17, 2012)
• Tax Prof Amicus Brief in PPL Corp. v. Commissioner (Jan. 27, 2013)
• Michael Knoll (Pennsylvania), Economic and Legal Arguments in PPL v. Commissioner (Feb. 15, 2013)
• Supreme Court Hears Oral Argument in PPL Corp. v. Commissioner (Feb. 21, 2013)